Wednesday, June 27, 2012

Kroger’s new consumer centric growth strategy is a good idea.

I
was once informed by a U.S. Navy Admiral that “aircraft carriers do not turn on
a dime”. Success does leave clues and
building on success is what Kroger is planning.
All food retailers goal is to continue growing profitably. When consumer food consumption patterns
evolve, retailers follow. Some food
industries sectors are bit slower than others the grocery sector for one the
restaurant sector is another. Kroger is
now leveraging its internal supply chain advantages, marketing know-how and
deep analytical expertize to shift from grocery store and super-size food
retailer into a spoke-N-hub end to end food retailer.

Michael
Schlotman Kroger Company’s Chief Financial Officer recently stated that Kroger
plans to open more convenience stores.
To date all Kroger convenience stores are located in the proximity of
its grocery stores. Kroger will be focusing
on consumer’s number one goal when food shopping speed of service with the new
c-store outlets. In addition the focus will be on fresh food, with fresh presentations;
including an expanded deli area for ready-2-eat and heat-N-eat food options aka
grocerant options.

While
Kroger is experimenting with different formats Schlotman says that it is too
early in the process to call it a full scale test. Kroger is aware that Wawa a chain of regional
convenience stores is the fourth largest food retailer in the Delaware
Valley. The success that Wawa and Sheetz
have found in the convenience store sector focusing on fresh food rather than
roller grill options has clearly placed the spotlight smaller footprint food
outlet options aka grocerant niche.

Kroger’s
national footprint could benefit greatly from such a move particularly on the
West Coast where Kroger’s large store format Fred Meyer could be complemented
with additional outlets. Importantly
there is a lack of corporate owned convenience stores on the West Coast and
very few if any with the consumer focus and quality attributes of c-store
industry leaders Wawa or Sheetz.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA
has been the global leader in the Grocerant niche for more on Foodservice
Solutions® Bing or Google Grocerants or visit
http://www.linkedin.com/in/grocerant,
twitter.com/grocerant Email: Steve@FoodserviceSolutions.us